Amcor Flexibles India has recently acquired Packaging India Private Limited (PIPL) from Indian collapsible tubes and laminates manufacturer Essel Propack in a $26.4m deal.
The deal comes as Essel Propack is planning to focus on core tube packaging by exiting the non-core adhesive lamination packaging business. The core tube packaging business is said to have great potential in beauty and cosmetics, pharma and health, as well as food industries across the globe.
“The divestment of Packaging India is in line with our strategic decision to intensify focus on the core tube packaging business globally, including India,” said Ashok Goel, Vice Chairman and Managing Director, Essel Propack.
PIPL operates three plants in North and South India where it produces flexible packaging products for the food and personal care markets. It generates around $40m in annual sales.
With this investment, Amcor will expand its footprint into Southern India, in addition to increasing existing blown film and cylinder making capabilities.
Currently, Amcor has four flexible packaging plants across the North and West of India.
“India is a very attractive market for flexible packaging driven by strong economic growth, favourable demographics and rapidly changing retail formats. The PIPL acquisition provides an opportunity to further expand Amcor’s customer base and enhance our unique value proposition in this important, high-growth market,” said Ron Delia , Director & CEO, Amcor.